The UK Nationwide House Price Index rose 1.7% year-on-year in May 2026, slowing from a 3.0% increase in April and marking the weakest annual growth in three months. On a monthly basis, prices fell 0.6% following a 0.4% rise in April, the first decline in five months and a sharper drop than the 0.1% fall expected.
Nationwide Chief Economist Robert Gardner attributed the loss of momentum in part to increased uncertainty linked to developments in the Middle East, which have pushed up energy prices and market interest rates, dampening consumer confidence and housing demand. Even so, he noted that the UK economy entered this period of stress from a relatively strong position, underpinned by robust first-quarter growth and easing inflation.
Gardner added that household balance sheets remain generally sound, supported by low debt levels, substantial savings buffers, and improving affordability. These factors, he suggested, mean that any weakness in the housing market could be short-lived, provided energy prices stabilize and geopolitical tensions subside.
